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Are you paying TOO MUCH for Recruitment?: Posted on Wednesday, 22 July 2015 12:56 p.m.

Are you paying TOO MUCH for Recruitment?

A little bit more shameless self promotion is needed today, as I just talked to a local agency and was absolutely flabbergasted by their steep - in fact ridiculously out-of-this-world high fees for recruiting.

They proposed that if my clients paid them 22% for a candidate (based on first years annual salary) that they would be getting a great deal. When I suggested that price was a bit extreme the consultant said it was because they do 'elite' head hunting around New Zealand.

Hmmm well so do I - but certainly not at that price!

I do sometimes collaborate with specialist recruitment agencies around NZ when required for technical, hard to fill, or skills shortage roles, although 90% of the time I source these candidates directly. However a fee of 15% is the most I have ever had to contend with from another agency and this gets negotiated down for my clients. I think 22-30% is just over-the-top and surely can't be justified!

Yes I agree we should be paid what we are worth and when we have put many years into becoming a professional recruiter then it is hard to put a price on skills and knowledge. Nobody really knows how much work goes on behind the scenes when recruiting, the tools, the time, the systems and processes, the resources, the technical knowledge and overall cost of getting us to the point where we provide such great results - all our clients usually see are the great candidates we seem to magic out of nowhere.

So yes, we are worth being paid accordingly.

But for an agency to offer me a candidate they just happen to have on their books at an initial charge of 22% when they are doing absolutely none of the work in this recruiting process and the ad has only been up for less than 24 hours - well that's a bit cheeky really. Whats worse is they have probably convinced that candidate to be 'exclusive' to their agency only and not apply for jobs directly, so they are in effect doing the candidate out of a potential role. I wonder whether that job seeker realises they have a price of around $22,000+ hanging over their head? Are they getting any interviews or job offers I wonder?

On the other hand One21 work very differently - we are contractors hired to do the full recruitment process at a cost effective fixed fee and we don't charge ridiculously high commissions - or in fact any commissions at all.

One21 are Recruitment Process Outsourcers for businesses in Tauranga and the Bay of Plenty, providing cost effective, timely, individualised, results driven recruiting solutions, often at a third of the cost or much less than traditional recruitment agencies, yet providing the highest level of service and often more value and better long term sustainable results. As we are engaged to manage the complete recruiting process for our clients as a contractor, you can rest assured we don't charge hefty commissions or make quick fixes just to get 'bums on seats'.

We utilise creative marketing, specialist knowledge, a comprehensive database and our wide web of connections, aiming to leave no stone unturned when it comes to sourcing your next star employee, whether you need Permanent staff, a short term Temp or a specialist Contractor.

We know where and when to advertise, can take care of any subtle 'shoulder tapping' or more direct 'head hunting' if you know who you want, and we always work with discretion, honesty and integrity, treating your candidates with fairness and respect, upholding your company's good name and aligning with your marketing, branding and cultural values.

So why wouldn't you hire a professional to take care of your next recruiting process, when you know it will save you on time, resources and manpower, that can be better utilised working on your own business?

If it's about cost then think about the cost of doing a DIY job and getting it wrong! You will be surprised at how cost effective it is to engage a recruitment outsourcer and your expectations for service and results will be surpassed.

To find out more about how One21 - The Recruitment Outsourcer can work for you, please get in touch today for a no-obligation chat.